TECHNO ECONOMIC ANALYSIS FOR COMBINED HEAT ENERGY

PRODUCTION SYSTEM ON HP CERAK LOCATION

Marina Jovanovi*, Valentina Turanjanin*, Vukman Baki*,
Bojan Bogdanovi**, Milada Pezo*
Institute of Nuclear Sciences VINA, Laboratory for Thermal Engineering and Energy
P.O. Box 522, Belgrade 11001, Serbia*
PUC Beogradske Elektrane Savski nasip bb, 11070 Belgrade, Serbia **
Abstract: In this paper analyzing possibilities of solar energy utilization for the purposes of hot
water production in Heating Plant Cerak is performed. Heating plant Cerak is an integral part of
PUC Beogradske Elektrane and it produces and delivers heat energy for heating and domestic
hot water to customers in Belgrade municipalities of Cukarica and Rakovica. Basic fuel currently
used in the plant is natural gas or fuel oil. According to the amount of heat necessary for water
heating in the combined system from the boiler and collector and the amount of heat entering the
boiler with the fuel (gas), simulation for the six months period (15 April-15 October) is done. Also,
three cases when the part of produced heat energy in the combined system is obtained from the
solar thermal system with a) Apricus type of collectors, b) NAU type of collectors and c) GJ type of
collectors are shown. The pay out period has been calculated through sum of annual savings and
their comparison to the total investment costs. Reduction in CO2 emission is calculated for summer
operating mode (three operating mode: 62/45C, 65/22C, 60/40C)
Key words: solar energy, energy savings, CO2 emission reduction
1. INTRODUCTION
Rapid industrial development accompanied by increase in usage of fossil fuels has led to air
pollution problems due to fossil fuels combustion, CO2 emission increase, the greenhouse effect,
climate change, and constant growth in oil and gas prices on world market has resulted in
worldwide expansion of renewable energy sources usage. The utilization of renewable energy
sources such as water, wind, sun, waves, biomass, and others rapidly replaces the conventional way
of energy providing by fossil fuels. According to the latest data, the total energy consumption
worldwide exceeds 14 terawatts annually. Within this amount, oil participates with 43%, gas with
16%, renewable energy sources with 14%, electricity with 10%, coal with 7% and the remaining
energy sources cover 4%.
Special interest for foreign investments in certain projects implementation in the scope of
renewable energy resources utilization is the result of increased interest of foreign partners in
obtaining the so-called Green Certificate for electrical energy production using new energy
resources and on that basis, the possibility of free disposal of own emission "quotas" and providing
additional financial resources for foreign investments in Serbian energy sector development.
Solar energy as an energy resource for heating and domestic hot water consumption has the
following advantages:
-It is free and available;
-It is environmentally clean (no combustion occurs, hence no toxic gases emission such as CO2,
SO2, NOx and the like);
-It belongs to renewable energy resources (RER), therefore exhaustion of resources cannot occur
(not like coal, oil and gas);
-It contributes to sustainable development (sustainable development implies stable society
development through generations, i.e. energy resources are used to the extent which allows nature
recovery);
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-In combination with classic energy resources it increases plant energy efficiency.
2. PRESENT TECHNOLOGICAL PROCESS AND CONNECTION OF NEW
EQUIPMENT WITH THE EXISTING PLANT
Heating plant Cerak is an integral part of PUC Beogradske Elektrane and it produces and
delivers heat energy for heating and domestic hot water to customers in Belgrade municipalities of
Cukarica and Rakovica. Basic fuel currently used in the plant is natural gas or fuel oil. Total boiler
installed capacity is 244.3MW, the consume capacity for heating and hot water is 230MW, while
the estimated installed capacity of 16,3 MW produces hot water. The designed level for summer
operation mode (15 June-15 October) is 65/22C, with the flux of 120 m3/h for sanitary hot water
production. The present summer operation mode is set up at 62/45C for the capacity of 6MW with
flux of 300 m3/h of hot water. It is expected that in the upcoming period modernisation and new
operation mode of district heating substations would be set up at 250 m3/h flux and temperature
mode of 60/40C.
Clean area possible for solar collectors placing is approximately15,000 m2. The covering of
two parking areas is included. The present route of gasoline and main district heating pipeline has
been considered at location selection (calculated 5 m from the gas line route). In consideration of
future enlargement of the main plant structure, location spot for accompanying structure with the
area of 8x8m for equipment storage (pumps, equipment for measuring and regulation, plate heat
exchangers, expansion vessel) was chosen, as well as location of heat accumulator with capacity of
1.000 m3.
Due to differences in pressure between main pipelines and solar collectors and different fluids
used in circulation (during heating plant winter operation mode, working fluid of solar plant would
be the mixture of liquid of water and propylene-glycol, while the main pipeline would use
chemically adjusted hot water), it would require installing plate heat exchanger. During design
phase, it would be proper to calculate plate heat exchanger area extension for 30% due to the
presence of propylene glycol in the working fluid. Figure 1 presents technological process of
connection between new equipment with the existing plant.

Figure 1. Scheme of technological connection between equipment and existing plant

2.1. Required heat energy for sanitary water heating obtained by gas combustion
All three mentioned operation modes are specified in accordance with 6 MW of heat consumption,
meaning that approximately same volume of heat has to be delivered to customer regardless of
operation mode in question.
Case 1: Present operation mode of 62/45C with hot water flux of 300m3/h:
Required amount of heat energy on one-hour basis necessary for water warming to specified
temperature is (constants taken from TRNSYS16 software):
.
m3
kg
kJ
MJ
Q = m c p t = 300
999 3 4.19
17 K = 21347.6
(1)
h
m
kgK
h
where:
.

Q required amount of heat energy, m - mass of water flux, - water density (= 999
p=1bar, i t=20C), cp- specific heat of water, c p = 4.19

kg
; at
m3

kJ
, t - difference of temperatures for
kgK

summer operation mode.

Amount of heat required for water warming during one day and during 6 months (15 April-15
October, 184 days) is:
Q = 512343.14

MJ
MJ
= 94271138.5
day
year

(2)

Amount of heat injected with fuel into boiler (chemical gas energy) is:
Q=

94271138,5
MJ
kJ
= 105922627.52
= 10.592 1010
0.89
year
year

(3)

In which:
=0.89 boiler efficiency coefficient
Net caloric value of gas is Hd = 34 MJ/m3, or Hd = 45.5 MJ/kg, and required volume of gas for
one year is:
m= 3115371.4 m3/year
Similarly to the calculation method for required amount of heat for water warming for present
operating mode, calculation of designed summer operation mode and new operating mode for heat
energy production is performed.
Case 2: Designed operation mode of 65/22C with hot water flux of 120m3/h:
Q = 518 370.7

MJ
MJ
184 = 95 380 208.8
dan
god.

(4)

Amount of heat injected with fuel into boiler (chemical gas energy) is:
Q=

95 380 208.8
MJ
kJ
=107 168 773.9
= 10.717 1010
0.89
god.
god.

(5)

Case 3: New operation mode of 60/40C with hot water flux of 250m3/h
Q = 502 297.2

MJ
MJ
184 = 92 422 684.8
day
year

(6)

Amount of heat injected with fuel into boiler (chemical gas energy) is:
Q=

92, 422, 684

MJ
kJ
= 103 845 713.3
= 10.385 1010
0.89
year
year

(7)

According to Srbijagas records [1], gas price for business consumers is Cg= 24.7 RSD/m3, i.e.
Cg=0.009 EUR/MJ, respectively. In accordance with Eurostat data [2] on gas prices variation during
1991-2006, it is accepted that gas price annual increase would be 6%. Figure 2 presents data for
projected gas prices. Also, total gas costs of 38,125,212.22 EUR, from 2008 to 2028 and for plant
summer operation mode is calculated. The analysis is made for 21-year period in order to calculate
estimated savings during solar collector lifetime (collector life time is currently estimated to 20-25
years). Simultaneously, that would be adequate period for savings assessment due to CO2 emission
reduction.
0.0289

Projected gas prices (EUR/MJ)

0.0257
0.0229
0.0203
0.0181
0.0161
0.0143
0.0128
0.0114
0.009

0.0101

08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Year (-)

Figure 2. Projected gas prices (during summer time) till 2028

2.2. Heat energy for sanitary water heating obtained from combined system for heat energy
production (gas combustion in the boiler and solar thermal system)
Two collector types are chosen for heat energy production through utilization of solar energy:
evacuated and flat-plate, i.e. three types: Apricus, NAU and GJ. [3-5]. The calculation is made for
total collector surface of 5,000 m2.
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The heat quantity obtained from the selected collector and from the boiler in the combined
system for heat energy production is given by simulation in the programme TRNSYS16, [6].
Table 1 shows data of different parameters for the selected collectors such as: collector area,
absorber area, total absorber area, absorber unit price and total expenses for each collector type.
Table 1. Data on different collector parameters
No Manufacturer Country

1.

Apricus

2.

NAU

3.

GJ

Type

Australia/
Vacuum
China
Germany Flat plate
Denmark/
Flat plate
Vietnam

Total
Total costs, Tk
Unit price
absorber
(colector area
of abs.,CA
area, PUA
5000 m2)
2
2
2
2
(m /pcs.) (m / pcs.)
(m )
(EUR/ m )
(EUR)

Collector Absorb.
area Pk area, PA

4.35

2.4

2,760.0

154

425,000

2.14

1.9

4,440.3

193

857,000

13.5

12.56

4,659.8

137

639,000

2.2.1. Costs of combined production of heat energy

Total costs of combined system for heat energy production are calculated as a sum of necessary gas
costs and operation and maintenance costs of solar thermal system. This costs are under review and
taken as a comparison with the costs incurred when the gas is the only fuel used as heat energy.
Tu= Tg + Top
Apart from combined system gas, operation and maintenance costs, the calculation was done
for the total investment costs. Total investment costs of the combined system for heat energy
production are given according to the necessary costs for collectors and costs of remaining part of
the solar thermo system. The premises for calculation are that the collector system installation costs
are 5% of the costs necessary for collectors procurement.
Additional expenses for solar thermo system of 5,000 m2 collector area are: T Ainv= 591,250
EUR for Apricus; T Ainv= 1,044,850 EUR for NAU; T Ainv= 815,950 EUR for GJ. According to the
literature, the solar thermo system operation and maintenance costs are 1% of the investment costs
[7].
In this paper for three analyzed cases the gas costs, when the part of produced heat energy in
the combined system obtained from the solar thermal system, are estimated. Total costs of the
combined system for heat energy production till 2028 year are calculated. Also, savings (shown in
EUR) realized for the period of 15 June till 15 October when the combined system of heat energy
generation is used (heat from the gas burning and from the solar collectors) in comparison to the
costs when only gas is used for heat energy generation were shown.
The calculation has been done for the total of 21 years, i.e. till 2028, due to the presumed
expiration date of solar collectors and possibility of savings calculation through CDM design for
CO2 emission reduction.
The pay out period has been calculated through sum of annual savings and their comparison
to the total investment costs.
3. THE CASE OF PRESENT PRODUCTION OF HEAT ENERGY (OPERATING MODE
OF 62/45 OC AND FLOW OF 300 m3/h OF HOT WATER)
Table 2 contains data given by simulation for the six months period (15 April-15 October) related to
the amount of heat necessary for water heating in the combined system from the boiler and collector
and the amount of heat entering the boiler with the fuel (gas).

Table 2. Amount of heat from the boiler and coll. and the amount of heat entering the boiler

Collector area

5000 m

Collector

a) Apricus
b) NAU
c) GJ

Q (obtained from Q (obtained from Q (entered in the

the collector)
the boiler)
boiler by gas)
MJ
MJ
MJ
8027673.65
85865629.55
96478235.45
9718722.50
84175157.61
94578828.78
9108189.88
84788128.77
95267560.42

Table 2 contains data related to the estimated gas costs burning in combined system boiler, in
cases when the part of produced heat energy in the combined system is obtained from the solar
thermal system with a) Apricus type of collectors, b) NAU type of collectors and c) GJ type of
collectors.
In case of present production of heat energy (operating mode 62/45OC and flow of 300 m3/h
of hot water, total collector area of 5,000 m2), the achieved savings results show that the most
profitable one would be the combined system with solar thermal system and Apricus collector type,
whose total investment cost would pay out in 6.29 years. Likewise, the results have shown that the
total investment costs for the solar thermal system with NAU collector type would pay out in 8.77
years, while with GJ collector type that period would be 7.50 years, Table 3.
The anticipated gas price increase of 6% per year has a favourable effect on pay out period
reduction. The biggest savings are expected at the end of operation life.
Table 3. Investments pay out period for the operating mode of 62/45OC and flow of 300 m3/h

Collector

a) Apricus
b) NAU
c) GJ

Investment pay out period

(annually)
Collector area of 5000 m2
6.29
8.77
7.50

4. DESIGNED OPERATING MODE FOR HEATING ENERGY PRODUCTION

(OPERATING MODE OF 65/22C AND 120 m3/h OF HOT WATER FLOW)
Table 4 gives data obtained by simulation, for six months period (15 April-15 October) regarding
quantity of thermal energy needed for water heating in the combined system obtained from boiler
and collector, and the quantity of heat obtained from the fuel (gas) entering boiler. The part of
produced heat energy in the combined system is obtained from solar heating system with a)
collectors produced by Apricus, b) collectors produced by NAU, and c) collectors produced by GJ.
Table 4. Quantity of heating energy obtained from collector and boiler and quantity of heat entering boiler
for period 15.04.-15.10.

Collector area

5000 m2

Collector

a) Apricus
b) NAU
c) GJ

Q (obtained from Q (obtained from Q (entered in the

the collector)
the boiler)
boiler by gas)
MJ
MJ
MJ
9,156,964.94
85,795,261.84
96,399,170.61
12,367,277.14
82,594,817.81
92,803,166.07
11,764,167.75
831,87,007.42
93,468,547.66

In the case of designed operating mode for heating energy production (operating mode
65/22C and flow 120 m3/h of hot water), obtained savings have given better results comparing to
present operation mode (Table 5). Certain better pay out can be noticed than in the case of present
6

operating mode. That can be explained by better efficiency in collectors operation, when return
temperature is lower (22C compared to 45C).
Table 5. Investments pay out period for operating mode of 65/22C and flow of 120 m3/h

Collector

a) Apricus
b) NAU
c) GJ

Investment pay out period

(annually)
Collector area of 5000 m2
5.60
7.18
6.03

5. FORECASTED OPERATING MODE FOR HEATING ENERGY PRODUCTION

(OPERATING MODE OF 60/40C AND FLOW OF 250 m3/h OF HOT WATER)
Table 6 gives data obtained by simulation, for six months period (15 April-15 October) regarding
quantity of thermal energy needed for heating water in the combined system obtained from the
boiler and from the collector, and quantity of heat obtained from the fuel (gas) entering boiler.
Table 6. Quantity of heating energy obtained from the collector and from the boiler and quantity of heat
entering boiler for period 15.04. 15.10.

Collector area

5000 m2

Collector

a) Apricus
b) NAU
v) GJ

Q (obtained from Q (obtained from Q (entered in the

the collector)
the boiler)
boiler by gas)
MJ
MJ
MJ
8,334,249.71
83,709,016.12
94,055,074.29
10,351,091.44
82,316,074.65
91,790,985.61
9,734,093.43
81,693,977.19
92,489,971.51

In the case of future operating mode of heating energy production (operating mode 60/40C
and flow of 250 m3/h of hot water), results of obtained savings are similar as in two previous cases,
as shown in the Table 7, i.e. they are some where between present operating mode and designed
operating mode .
Table 7. Investments pay out period for operating mode of 60/40C and flow of 250 m3/h

Collector

a) Apricus
b) NAU
c) GJ

Investment pay out period

(annually)
Collector area of 5000 m2
6.1
8.34
7.1

6. REDUCED CO2 EMISSION DUE TO DECREASED GAS CONSUMPTION

Republic of Serbia has rectified Kyoto protocol, according to which Serbia is not in the group of
Annex I countries. Thereby the opportunity for including this type of project in CDM project (Clean
Development Mechanism) is opened, as installation and use of thermal receptors of solar energy
reduces consumption of fossil fuel and CO2 emission.
According to literature [8], natural gas combustion releases 50.33 kg CO2/GJ fuel energy.
Based on the results obtained by simulation for different types and different collector areas,
reduction of CO2 emission is calculated for summer operating mode of Generation Plant CERAK.
In Tables 8-10 are given values for reduction of CO2 emissions for all simulated cases.

Table 8. Reduction of CO2 emissions for mode of operation of 62/45C, 300 m3/h

Reduction of CO2 emissions (t/year)

Collector area
Collector
5000 m2
a) Apricus
453.97
b) NAU
549.60
v) GJ
515.07
Table 9. Reduction of CO2 emissions for mode of operation of 65/22C, 120 m3/h

Reduction of CO2 emissions (t/year)

Collector area
Collector
5000 m2
a) Apricus
517.83
b) NAU
699.38
v) GJ
665.27
Table 10. Reduction of CO2 emissions for mode of operation 60/40C, 250 m3/h

Reduction of CO2 emissions (t/year)

Collector area
Collector
5000 m2
a) Apricus
471.31
b) NAU
585.36
v) GJ
550.47
Savings in CO2 emission of 1 t/year is equal to 1 CER value with the market value of 4 to 14
euros. Value of 8 EUR/CER has been adopted, as well as the certificate terms of collection 3x7
years (total period of 21 years, which is forecasted operation life of collector).
Savings using combined system for water heating due to reduction of CO2 emission for
different operating modes are given in the Tables 11-13.
Table 11. Reduction of CO2 emissions for operating mode of 62/45C, 300 m3/h

Savings by CDM project for 21 years (EUR)

Collector area
Collector
5000 m2
a) Apricus
76,267
b) NAU
92,333
v) GJ
86,532
Table 12. Reduction of CO2 emissions for operating mode of 65/22C, 120 m3/h

Savings by CDM project for 21 years (EUR)

Collector area
Collector
5000 m2
a) Apricus
86,995
b) NAU
117,496
v) GJ
111,765

Table 13. Reduction of CO2 emissions for operating mode of 60/40C, 250 m3/h

Savings by CDM project for 21 years (EUR)

Collector area
Collector
5000 m2
a) Apricus
79,180
b) NAU
98,340
v) GJ
92,479
Costs of validation, monitoring and certification for entire project are amounting EUR 85000,
and based on this information we can say that, in principle, it is not profitable to participate in CDM
projects for total collector area of 5000 m2, except for Apricus in present operation mode and
forecasted operating mode. However, by increasing solar collectors area, situation changes and
additional savings can be achieved by installation of combined system for water heating when
participating in CDM projects.
7. CONCLUSION
Heating Plant CERAK is a highly attractive location solar collectors placing. Simulation is made for
2

combined system for DHW production for collector area of 5,000 m during summer operating
mode of Heating Plant Cerak. Three possible operating modes of combine system is analyzed for
o

the specified heat capacity of 6 MW: present of 62/45 C with flow of 300 m /h of hot water,
o

designed of 65/22 C with flow of 120 m /h and future of 60/40 C with flow of 250 m /h, that will
be achieved after planned reconstruction and modernization of entire system of HP CERAK.
In accordance with type of collector and its operating mode, gas savings are ranging from
7.58% to 11.54%. Investment can be paid out in period between 5.6 and 8.77 years depending on
collector type and operating mode of combined system. The study uses annual increase in gas price
3

with growth rate of 6% (present gas price is 0.3 EUR/m in 2008 year) and increase in gas price that
favorably influences pay out period, and the best saving is forecasted for the end of operation life of
solar collectors.
Installation of solar collectors would reduce hazardous gases emission, especially CO2 that
has significant effects on environment and contributes to the people health. Additionally, the CO2
emission reduction has in EU, and in accordance with Kyoto protocol, its market value and opens
2

the possibility of applying for CDM project. For areas of 5,000 m , savings for 21 years are approx.
7% of total investment costs, and by increasing collector areas the savings additionally increase due
to fixed costs for equipment and monitoring of CDM project.
AKNOWLEDGMENT
This research has been financed by Ministry of Science and Technological
Development
of
Republic
of
Serbia,
in
the
frame
of
National
Energy
Efficiency Program. Research has also been supported by PUC Beogradske
elektrane, Belgrade.
REFERENCES
[1] www.srbijagas.com
[2] http://epp.eurostat.ec.europa.eu/
[3] www.apricus.com
[4] www.nau.gmbh.de
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[5] www.arcon.dk
[6] TRNSYS16, A Transient System Simulation Program, Solar Energy Laboratory, University of
Wisconsin, Madison, USA and Transsolar, Stuttgart, Germany.
[7] D. Pahud, Central Solar Heating Plants with Seasonal Duct Storage and Short-term Water
Storage: Design Guidelines Obtained by Dynamic System Simulations, Solar Energy Vol. 69,
No. 6, pp. 495509, 2000.
[8] www.naturalgas.org/environment/naturalgas.asp

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